AirAsia first-quarter profit up 8%

AirAsia announced an 8% year-over-year increase in first-quarter net income to MYR224.1 million ($68.7 million) on a 10% rise in revenue to MYR878 million.

Passengers carried lifted 17.1% to 3.7 million; the airline did not release RPK and ASK figures. CEO Tony Fernandes said the period's major highlights were the "sustained turnaround" of its Thai and Indonesian operations and an "astounding 31% jump in ancillary income." Ancillary revenue comprised 16% of the carrier’s total revenue.

"The results in Thailand and Indonesia and the contribution from ancillary [revenue] are an endorsement of the strategic shifts we put in place in 2009," Fernandes said. "Thai AirAsia is now the largest domestic carrier in Thailand, while Indonesia's improved performance is based on a realignment of its routes towards higher-yielding international flights."

AirAsia Thailand recorded a 30% increase in revenue to THB3.1 billion ($95.6 million) on a 25% increase in passenger volume. "It's an amazing performance and validates our strong belief that AirAsia Thailand is more than capable of weathering whatever challenges come its way and still post impressive numbers," Fernandes said. "These efforts will also get a powerful boost with the transition to an all-Airbus fleet in Thailand by the third quarter of this year."

He noted that AirAsia Indonesia's revenue grew 37% year-over-year, though he did not provide specific financial figures.